FORD SECRET

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TSO Global SummitTSO Global Summit

Mike JordanMike JordanSeptember 13, 2000September 13, 2000

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As the Company’s Principal Source ofAs the Company’s Principal Source of

Customer Support & Vehicle Service, Customer Support & Vehicle Service,

Increase Shareholder Value Through Profitable Increase Shareholder Value Through Profitable

Growth in Aftersales Products & ServicesGrowth in Aftersales Products & Services

Automotive Consumer Services GroupAutomotive Consumer Services Group

MissionMission

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Where We Have Come From – Transformation Where We Have Come From – Transformation to a Consumer-Focused Enterpriseto a Consumer-Focused Enterprise

FORD PARTS & SERVICEFORD PARTS & SERVICE

• Sell PartsSell Parts• Began Customer Began Customer

Satisfaction EmphasisSatisfaction Emphasis• Dealer Channel FocusedDealer Channel Focused

FORD CUSTOMER SERVICEFORD CUSTOMER SERVICE

• Customer Satisfaction & Customer Satisfaction & Profitable GrowthProfitable Growth

• Dealer Channel Focused Dealer Channel Focused

AUTOMOTIVEAUTOMOTIVECONSUMER SERVICES CONSUMER SERVICES

GROUPGROUP

• Lasting Consumer Lasting Consumer RelationshipsRelationships

• Growth Beyond Dealer Growth Beyond Dealer ChannelChannel

$8 BILS.$5 BILS. $10 BILS.

1980s - 19961980s - 1996 1997 - 19991997 - 1999 20002000

All-MakesAll-MakesServiceService

CONSUMERFOCUSED

ENTERPRISE

GLOBALENTERPRISE

REGIONALENTERPRISE

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FORD MOTOR COMPANY VISION

TO BECOME THE WORLD’S LEADING CONSUMER COMPANY FOR AUTOMOTIVE

PRODUCTS & SERVICES

ACSG Benefits to Ford Motor CompanyACSG Benefits to Ford Motor Company

ACSG VISION

BE THE # 1 AFTERSALES & SERVICE OPERATION IN THE WORLD

KEY COMPONENT KEY COMPONENT OF COMPANY’S OF COMPANY’S

GROWTH GROWTH STRATEGYSTRATEGY MOST MOST

CONSUMER CONSUMER TOUCHPOINTSTOUCHPOINTS

SUPERIOR VALUE SUPERIOR VALUE PROPOSITION –PROPOSITION –

RECAPTURE FORD RECAPTURE FORD CUSTOMERS, WIN CUSTOMERS, WIN

NEW CUSTOMERSNEW CUSTOMERS

CREDIBLE CREDIBLE TRANSFORMATION TRANSFORMATION

STORY FOR STORY FOR INVESTMENT INVESTMENT COMMUNITYCOMMUNITY

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Significant Growth Challenge For ACSGSignificant Growth Challenge For ACSG

Worldwide Revenue (Bils.)Worldwide Revenue (Bils.)

$10

All-Makes Adjacency Channel

Dealer Channel

$7$8.5

$?

19981998 19991999 20032003(PROJ.)(PROJ.)

20002000(PROJ.)(PROJ.)

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Opportunities in the Vehicle-RelatedOpportunities in the Vehicle-RelatedServices Value ChainServices Value Chain

Estimated Lifetime Revenue Potential For a Vehicle

(10 Years / 100,000 Miles)

$68,000 $68,000

$27,000$27,000 $41,000$41,000

NEW VEHICLE PURCHASE

NEW & USED VEHICLE

FINANCING

INSURANCE

OTHER RELATED PRODUCTS &

SERVICES

ACCESSORIES MAINT. & REPAIR,

RECYCLING

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Growth Will Be Achieved ThroughGrowth Will Be Achieved ThroughDual ChannelsDual Channels

GROW PROFITABILITYBUILD STAKEHOLDER VALUE

ALL-MAKESCHANNEL

• Retail ServiceRetail Service

• BodyshopsBodyshops

• WholesaleWholesale

• AccessoriesAccessories

• Retail ServiceRetail Service

• BodyshopsBodyshops

• WholesaleWholesale

• Other Products /Other Products /ServicesServices

FORD DEALERCHANNEL

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Dealer Channel StrategyDealer Channel Strategy

• Build Customer Loyalty to Retain Existing CustomersBuild Customer Loyalty to Retain Existing Customers- Blue Oval Certified Program- Blue Oval Certified Program

- Lincoln Premiere Experience- Lincoln Premiere Experience

- Expanded After Warranty Adjustments- Expanded After Warranty Adjustments

• Reduce Defectors/Attract New CustomersReduce Defectors/Attract New Customers- Quality Care Maintenance/Customers for Life- Quality Care Maintenance/Customers for Life

- Around the Wheel- Around the Wheel

- Quality Care Service Centers/Quicklane/Rapid Fit- Quality Care Service Centers/Quicklane/Rapid Fit

- Ongoing Marketing Campaigns- Ongoing Marketing Campaigns

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Dealer Channel StrategyDealer Channel Strategy

• Convenience/Capacity ImprovementsConvenience/Capacity Improvements

- Extended Hours and Saturday Service- Extended Hours and Saturday Service

- Transportation Assistance Program- Transportation Assistance Program- Roadside Assistance- Roadside Assistance

- Technician Recruitment- Technician Recruitment

- Advanced Production System/Shop Structure- Advanced Production System/Shop Structure

• Improve Product/Price CompetitivenessImprove Product/Price Competitiveness- Improve Cost Structure- Improve Cost Structure

- Develop Cost Effective Repairs / Repair Product Planning- Develop Cost Effective Repairs / Repair Product Planning

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RankRank

500500 600600 700700 800800 900900

LexusLexus

CadillacCadillac

JaguarJaguar

ChryslerChrysler

HondaHonda

ToyotaToyota

ChevroletChevrolet

FordFord

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22

551313

2121

2222

2323

2626

3737 KiaKia

815815

778778

771771

665665

730730

680680

677677

657657

554554

Industry Average

683

Industry Average

683

J. D. Power – Customer Service Index J. D. Power – Customer Service Index (All Makes)(All Makes)

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Top 10 Dealer IssuesTop 10 Dealer Issues

Service Labor Time Request for ReviewService Labor Time Request for Review

Service Labor Time Standards – Recall and ONPService Labor Time Standards – Recall and ONP

New Model Labor TimeNew Model Labor Time

• Parts Availability / Contract CarriageParts Availability / Contract Carriage

• Transportation Assistance PlanTransportation Assistance Plan

Technician Recognition, Incentives and RetentionTechnician Recognition, Incentives and Retention

• Product QualityProduct Quality

Worldwide Diagnostic SystemWorldwide Diagnostic System

• Retail Growth Support for Expanded Hours and Saturday Retail Growth Support for Expanded Hours and Saturday ServiceService

• QCDealer.comQCDealer.com

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Six SigmaSix Sigma

• 14 Black Belt Candidates Trained14 Black Belt Candidates Trained

• 4 Black Belt Candidates in TSO4 Black Belt Candidates in TSO

• Will Exceed 75 by Year-EndWill Exceed 75 by Year-End

• Teamwork Will Help Teamwork Will Help USUS Improve Customer Improve Customer SatisfactionSatisfaction

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Customer SatisfactionCustomer Satisfaction

Is Is

Job #1Job #1

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All-Makes Channel All-Makes Channel

Provides Significant Growth OpportunityProvides Significant Growth Opportunity

GROW PROFITABILITYBUILD STAKEHOLDER VALUE

• Retail ServiceRetail Service

• BodyshopsBodyshops

• WholesaleWholesale

• AccessoriesAccessories

• Retail ServiceRetail Service

• BodyshopsBodyshops

• WholesaleWholesale

• Other Products /Other Products /ServicesServices

ALL-MAKES CHANNEL

DEALER CHANNEL

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All-Makes Growth StrategyAll-Makes Growth Strategy

• Profitable Growth – Expanding Downstream Profitable Growth – Expanding Downstream

• Leverage Existing Dealer Channel Expertise to Expand Leverage Existing Dealer Channel Expertise to Expand into All-Makes Wholesale and Retail Salesinto All-Makes Wholesale and Retail Sales

• Acquire Profitable Companies that have Strong Brands Acquire Profitable Companies that have Strong Brands and Best-in-Class Competitive Advantagesand Best-in-Class Competitive Advantages

• Build Lasting Consumer Relationships Through Linkage Build Lasting Consumer Relationships Through Linkage Between Companies and ChannelsBetween Companies and Channels

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Consumer-Focused StrategyConsumer-Focused StrategyE-ENABLED CUSTOMERE-ENABLED CUSTOMERINFORMATION FLOWSINFORMATION FLOWSCUSTOMER VALUECUSTOMER VALUE

PROPOSITIONPROPOSITION

REVENUE SYNERGIES --REVENUE SYNERGIES --BUNDLING OF SERVICESBUNDLING OF SERVICES& CROSS SELLING& CROSS SELLING

COST SYNERGIES --COST SYNERGIES --GOODS & SERVICESGOODS & SERVICESFLOWFLOW

EXTENDEDSERVICE

MAINTENANCE& LIGHT REPAIR

HERTZ/FLEETMANAGEMENT

AUTO INSURANCE

COREAUTO

AUTOFINANCING

NEWVEHICLERETAIL

USEDVEHICLERETAIL

= = ACSG SEGMENTSACSG SEGMENTS

COLLISION

ACCESSORIES

RECYCLING

CONSUMERS

$27,000

$41,000

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Vehicle PersonalizationVehicle Personalization Mass Customization – Europe Mass Customization – Europe Vehicle Personalization – NA Vehicle Personalization – NA Macro - AccessoriesMacro - Accessories

Maintenance & Light RepairMaintenance & Light Repair

Extended Service ContractsExtended Service Contracts

CollisionCollision

RecyclingRecycling North America / EuropeNorth America / Europe

SEGMENTSSEGMENTS ACTIONS TO DATE ACTIONS TO DATE

Growth Initiatives – ACSGGrowth Initiatives – ACSG

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How The Linkages Are DeliveredHow The Linkages Are Delivered

• Adjacencies as Customer / SupplierAdjacencies as Customer / Supplierto Other Ford Businesses & Adjacenciesto Other Ford Businesses & Adjacencies

INTERNAL T

O F

ORD M

OTO

R CO

MPANY

INTERNAL T

O F

ORD M

OTO

R CO

MPANY

• Delight the CustomerDelight the Customer

• Superior Value Superior Value Proposition for Proposition for CustomersCustomers

BEST PRACTICE SHARING

COST-REDUCING SYNERGIES

INTERNAL CROSS SELL

• PurchasingPurchasing• InvestmentInvestment• Human ResourcesHuman Resources

• BenchmarkingBenchmarking• TrainingTraining• Process OptimizationProcess Optimization

VISIB

LE TO C

USTOMER

VISIB

LE TO C

USTOMER

EXTERNAL CROSS SELL

VALUE-ADDED SERVICE& PRODUCT PACKAGES

CONSUMER EXPERIENCEMANAGEMENT

• Satisfy the CustomerSatisfy the Customer

LINKAGES & SYNERGIES WILL CREATE ADDED VALUE FOR FORD MOTOR COMPANY

& THE CUSTOMER

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• Offer High-Quality Products & Services Resulting in Profitable Growth

• Improve Customer Satisfaction to Build Long-Term Loyalty to Ford Motor Company

• Continue Transformation to a Consumer-Focused Business

•Pursue Profitable Growth Opportunities by Expanding Downstream

•Acquire Profitable Companies with Strong Brands & Best-in-Class Competitive Advantages

•Best Practices Sharing

GOAL: BUILD LASTING CONSUMER RELATIONSHIPS

• PROVIDE UNIQUE COMPREHENSIVE SERVICE OFFERINGS

• DEVELOP LINKAGES BETWEEN CHANNELS & OTHER FORD MOTOR COMPANY PRODUCTS & SERVICES

DEALER CHANNELDEALER CHANNEL ALL-MAKES CHANNELALL-MAKES CHANNEL

LINKAGESLINKAGES

CUSTOMER FOCUSCUSTOMER FOCUS

GOAL: KEEP / RECAPTURE FORD CUSTOMERS GOAL: ADD NEW CUSTOMERS

ACSG Business StrategyACSG Business Strategy

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TSO Contributions and SuccessesTSO Contributions and Successes

• Technician Online CommunityTechnician Online Community

• Professional Technical SocietyProfessional Technical Society

• Labor Time Integrity and EfficiencyLabor Time Integrity and Efficiency

• Service Publications/Technical Training on WebService Publications/Technical Training on Web

• Owners’ Guides on CD-ROMOwners’ Guides on CD-ROM

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Trustmark Alliance EffortsTrustmark Alliance Efforts

• Utilizing the Economics of a Global Equipment Contract Utilizing the Economics of a Global Equipment Contract Across Trustmark Partners Across Trustmark Partners 

     

• Commonizing Labor Times Across Vehicle Platforms Commonizing Labor Times Across Vehicle Platforms (Mazda Tribute/Ford Escape) (Mazda Tribute/Ford Escape) 

     

• Trustmark Agreement With Tech Training Standards Trustmark Agreement With Tech Training Standards 

     

• Common Website for Trustmark InformationCommon Website for Trustmark Information

• Common Creation of Service Information Across TrustmarkCommon Creation of Service Information Across Trustmark

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What’s On Your Mind?What’s On Your Mind?